Emerging technology solutions every CFO should know about

Chief Financial Officers (CFOs) manage a financial department, but more often than not, it is only a small part of their ever-growing job description. Their expertise revolves around financial operations and strategies, making them the go-to individual for anything finance related. In today's corporate landscape, CFOs occupy an increasingly competitive position, transitioning from an optional role to a must-have asset for businesses of all sizes. They now hold the third-highest C-suite ranking position, following the COO and CEO.

This article explores the critical role CFOs play in decision-making and the challenges stemming from their growing responsibilities and the technology they can use to alleviate stress and focus on core matters.

Cloud marks a major shift in the development and delivery of technological solutions, and it's quickly becoming the new standard. There are three primary kinds of cloud applications:

Infrastructure as a Service (IaaS)

Platform as a Service (PaaS)

Software as a Service (SaaS)

CFOs are enthusiastic about cloud applications for a variety of reasons. They see the genuine possibility of decreased costs, but it's frequently the strategic value that tips the scales. Other benefits of cloud adoption include:

Faster time to market: Cloud platforms enable businesses to rapidly develop and deploy new goods and services, as well as monitor their effectiveness in real-time.

Scalability: Businesses can efficiently handle demand spikes and lulls by being able to supply more resources as needed.

Agility and Creativity: Major companies are incorporating important new capabilities with their cloud products, allowing them to be more agile and innovative. Companies may now use these capabilities for data solutions, advanced analytics, machine learning, and other purposes to foster a culture of continuous development.

The benefits of using cloud applications are vast, but implementation is not always simple and depends on the rigor. If you’re proactive though, you may be gaining competitive advantage in terms of innovation, agility, and cost.

Automation is becoming ubiquitous in various sectors, freeing humans from repetitive tasks and enhancing efficiency. Though in some scenarios automation may completely take over a task, there is no doubt that human expertise will always be required. Nonetheless, using automation to reduce repetitive and manual work can bring huge increases in efficiency and cost reduction in the world of finance. As certain tasks happen automatically, CFOs can engage with department heads and the CEO on more pressing matters.

Automation also has the potential to greatly reduce, if not completely eradicate, human error. Those errors, typically accidental and so minute, often go unnoticed but can eventually throw off numbers, causing more work for the CFO and their team in the long run.

Lastly, data breaches can be detrimental to the reputation and trustworthiness of the business, leading to a loss of customers and revenue further down the line. Using automation throughout your business and financial sector can add a layer of protection against breaches, potentially saving billions of dollars and enhancing the trust of numerous customers.

Going hand in hand with automation is the latest in artificial intelligence (AI). Using AI can free up time across departments that’s otherwise spent on repetitive, manual work. In doing so, AI can also reduce overall errors and stay on track for longer periods. By removing the human aspect and allowing AI to take over certain tasks, more work can be completed faster and more efficiently.

Beyond taking over manual tasks, AI also has the potential to help CFOs by using data to predict future outcomes which can be used to improve business processes. AI analytical tools can also significantly increase the supplier selection process, improve cash flow management, and allow the CFO to make informed decisions based on real-time data.